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Vertis granted final approval to access $380 million DIP
By Jennifer Lanning Drey
Portland, Ore., Aug. 13 - Vertis Communications gained final court approval for access to its $380 million debtor-in-possession credit facility provided by GE Commercial Finance, according to a company news release.
The approval came Wednesday from the U.S. Bankruptcy Court for the District of Delaware.
"Our financial restructuring is on schedule and proceeding smoothly," Mike DuBose, chairman and chief executive officer of Vertis, said in the release.
The company said it will continue to operate its business as usual as it finalizes its pre-packaged restructuring plan, which is being used to effectuate a merger with American Color Graphics.
American Color Graphics also gained court approval on Wednesday for access to its $135 million DIP facility from Bank of America.
As previously reported, Vertis' DIP facility will include a $50 million term loan A, a $200 million term loan B and a $130 million revolving credit facility.
Interest on the term loan A will be Libor plus 550 basis points; interest on the term loan B will be Libor plus 300 bps; and interest on the revolver will be Libor plus 275 bps.
The Vertis DIP facility will mature on the earlier of 90 days or the effective date of a plan of reorganization.
Baltimore-based Vertis provides print advertising and marketing solutions. Its Chapter 11 case number is 08-11460.
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